Board Member Engagement – The Missing Piece of the Puzzle Understanding and improving board engagement through Clarity, Connections, and Commitment. Dan Harris Wells Fargo Philanthropic Services Email: daniel.p.harris@wellsfargo.com Phone: 720-947-6775 This information is provided for illustration and education purposes only. Wells Fargo & Company and its affiliates do not provide legal advice. Please consult your legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared. Board Members’ Vital Role “If an institution is having trouble raising money, don’t look to the development office; don’t look to the chief executive; first check out the board of Trustees.” - Fisher Howe, The Board Member’s Guide to Fundraising, 1991 “Board leadership and participation are essential to successful fundraising. Raising money is also a great deal of work and a true partnership between board members and key staff.” - G. Worth George, Fearless Fundraising for Nonprofit Boards, 2003 2 Characters You Might Meet on a Board Avoidus Riski Allis Welli Divertus Attenti Heidi Agenda Spaci Cadetus Lookus Smarti Bendi Windi Pompus Meani Buy In, Saving Your Good Idea from Getting Shot Down, by John P. Kotter and Lorne A. Whitehead. 3 Defining Strong Engagement? Engaged Directors… 4 Defining Strong Engagement? Engaged Directors… 1. Are eager to participate 2. Rarely miss meetings, show up prepared, are respectful 3. Take ownership 4. Are reliable & responsible 5. Know everyone’s name 6. Volunteer beyond the board 7. Happily share their time and talent 8. Contribute at a “significant” level 9. Drink the Kool-Aid 10. Share the Kool-Aid 11. Actively champion our cause by telling everyone about us by making introductions by participating with fundraisers… 5 The Board Member Experience Orientation Champion! Positive Retention path ENGAGEMENT: Happiness / Confidence/ Satisfaction / Optimism Time Departure path Prospect Negative DOES NOT Become Board Member Recruiting Phase Honeymoon! Get the Work Done! Phase 6 Relationship Building Takes Time How to measure the connection Level 1: Awareness Level 2: Uniqueness Level 3: Acceptance Level 4: Level 5: Affiliation Champion 7 Benefits for the Board of Strong Engagement? 8 Benefits for the Board of Strong Engagement? 1. 2. 3. 4. 5. 6. Efficiency Improved governance Help more clients More friendly environment Raise more money Fewer disagreements? • Or, more respectful disagreements? 7. Get more done 8. Less “work” 9. Have more fun 9 Why Become a Board Member? 10 Why Become a Board Member? 1. Passion for the Cause 2. To be part of something bigger than themselves 3. The Seven Faces of Philanthropy* 4. Asked by someone they respect 5. Self-esteem 6. Feeling of Purpose 7. Social Acceptance / Social Influence 8. Social Currency / Bragging rights 9. Resume-padding 10.Business development 11.? 11 Why Become a Board Member? 1. 26%: Communitarians 2. 21%: The Devout 3. 15%: Investors 4. 11%: Socialites Self Actualization 5. 10%: Repayers Self Esteem 6. 9%: Altruists 7. 8%: Dynasts *The Seven Faces of Philanthropy - Prince, Russ A. and Karen M. File Love / Belonging Safety Physiological 12 The Seven Faces of Philanthropy Communitarians give because of their sense of belonging to a social community. They support cultural, human service, religious, and educational organizations. The Devout do good because it is God’s will. Giving is a moral obligation. Investors see philanthropy as good business, and are motivated by personal tax and estate benefits. They look for organizations that are business-like and are well-run. Socialites do good work or give because it is fun. They are often members of a social class or group for which fundraising includes some form of socializing and entertainment. Altruists focus on social causes and giving that provide a sense of purpose and personal fulfillment. They believe that giving promotes spiritual growth (in this case, not religious). Giving is a moral imperative and everyone’s responsibility. They see themselves as true philanthropists, unfettered and untainted by business considerations or personal gain. Repayers give because of what they have received in life, which could involve gratitude for medical or educational benefits that they have received. They insist on costeffectiveness and want nonprofit organizations to focus on client needs. Dynasts see philanthropy as a family tradition. Their giving results from childhood socialization by parents or other relatives as to the importance of philanthropy. Philanthropy is part of their self-concept and their rewards from giving include a positive self-identity and strengthened family values. *The Seven Faces of Philanthropy - Prince, Russ A. and Karen M. File, 1994 13 Why Would a Board Member Choose To Be Highly Engaged? 14 Why Would a Board Member Choose To Be Highly Engaged? 1. Passion for the Cause 2. Clarity on Mission / Need 3. Commitment to the Cause 4. Commitment to Fellow Board Members 5. Commitment to Staff Members 6. Commitment to Clients / Beneficiaries 7. Desire to accomplish more, more quickly 8. Sense of responsibility 9. Sense of obligation 10.Networking / Business Opportunities? WIIFM? 15 Why Leave a Board? 1. Term Limits 2. Higher priorities / Lack of time 3. Competing Interests / Conflict of Interest Other Reasons? 16 Why Leave a Board? 1. Term Limits 2. Higher priorities / Lack of time 3. Competing Interests / Conflict of Interest 4. Loss of feeling of contribution 5. Loss of belief that opinions count 6. Loss of optimism / loss of purpose 7. Loss of clarity (on role, mission) 8. Loss of shared values 9. Loss of friends / fun 10.Lack of appreciation for involvement 11.Loss of commitment 12.Negativity / Disrespect / Dysfunction 17 Causes of Board Dysfunction? 18 Causes of Board Dysfunction? 1. 2. 3. 4. 5. 6. 7. 8. 9. Loss of Mutual Respect / Disrespect Competing values* Competing interests* Self-Interest* Loss of shared commitment Loss of connection within the group Personality conflicts Founder’s Syndrome *Fiduciary Duties: ? Care Loyalty Obedience 19 Fiduciary Duties Good Faith Business Judgment Rule Pay Attention Loyalty No Harm No Personal Benefit Interest of Organization First Obedience Follow Applicable Laws Carryout Nonprofit Purpose Don’t go Beyond Scope Care 20 Many Factors Influence Engagement… Board Leadership Meeting Structure Clarity on Mission /Vision Recruiting/ Orientation Sense of Shared Values Term Limits Clarity on Role Board Diversity Sense of Commitment Engagement Size of Board Public Recognition Time Required Networking Opportunities 200906092 TPB-AB21039 (09/09) 21 Structural Influences Time Required? (frequency, duration of board and committee meetings) Size of Board? Positive Influences vs. Negative? 22 Diversity: Influence on Engagement? Relationships: Influence? Networking? Areas of Expertise: Finance, Marketing, etc. Gender Ethnicity Age Committee Positive Influences vs. Negative? 23 Term Limits: Influence on Engagement? 1. Positives? • • • • New people, new ideas, new connections… • New friends, new commitments Solid sense of time commitment Planned opportunity to step away Create adaptability within the organization 2. Negatives? • • • • Creates a group of insiders • “This is the way we’ve always done it…” Difficult for outsiders to enter Sometimes, complexity of organization means “getting up to speed” takes time Required departure of good partners 200906092 TPB-AB21039 (09/09) 24 Step 1: Debate Your Mission What What is Who is What are does our What is our our our customer our plan mission customer results value ? ? ? ? ? The Five Most Important Questions You Will Ever Ask About Your Organization - Peter Drucker (with others) 25 The Points of Clarity 1. Who Do We Serve? 2. What Is Our Core Strength? 3. What Is Our Core Score? 4. What Actions Can We Take Today? The One Thing You Need to Know …About Great Managing, Great Leading, and Sustained Individual Success - Marcus Buckingham 26 Through the lens of your mission… What if we disappeared tonight? What will the world / the community / individuals regret having lost? - Tom Ahern What would this organization be doing, that it’s not doing already, if money were no object? - Pamela Jones Davidson 27 Mission in Mind: Program Review Contribution to Mission LOW HIGH LOW Use of Resources HIGH Use of Resources Is this really a good fit for us? Reconfigure or Eliminate these Programs? Source: Kate Barr, Nonprofits Assistance Fund Keep or Expand these Programs CORE Can we do it differently with fewer or different resources? 28 Step 2: Define Your Values Compassion Empowerment Health Personal Responsibility Happiness Optimism Do Your Personal Values Align with those of the Organization? 29 Values: Organizationally, Personally? 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. Acceptance Accountability Achievement Adventure Affordability Ambition Animal rights Appearance Approval Artistry Authentic Autonomy Balance Beauty Belonging Boldness Career Challenge Charm Clarity Collaboration Commitment Communication Community Compassion Competence Completion Confidence Conformity Connection Connectivity Consistency Conflict Resolution Control Courage 36. Creativity 37. Culture 38. Curiosity 39. Dignity 40. Diligence 41. Determination 42. Education 43. Empowerment 44. Enjoyment 45. Environment 46. Ethical 47. Excellence 48. Expertise 49. Expression 50. Fairness 51. Faith 52. Family 53. Financial Security 54. Forgiveness 55. Freedom (personal?) 56. Friendship 57. Frugality 58. Fun 59. Future 60. Generosity 61. Growth (personal?) 62. Happiness 63. Harmony 64. Healing 65. Health (physical / emotional) 66. Helping 67. Honesty 68. Honor 69. Hope 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. Humor Imagination Independence Influence Ingenuity Innocence Integrity Joy Knowledge Laughter Leadership Learning Love Loyalty Making a Difference Mobility Moderation Modest Objective Open Mindedness Opportunity Optimism Originality Partnership Passion Peace Persistence Play Pleasure Power Privacy Prosperity Purity Rebellion Recognition 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. Relaxation Respect Responsibility Safety Security Service Simplicity Sincerity Social Responsibility Solitude Spirituality Spontaneity Stability Status Stewardship Strength Surprise Support Sustainability Teaching Thoughtfulness Thought leadership Tolerance Tradition Transformation Trust Uniqueness Vision Wealth Wisdom Winning Wholesome Work-Life Balance __________________ __________________ 30 Values Past, Present, Future? For more information on planning with values, see Dennis Jaffe’s The Values Edge (SM) card system: www.dennisjaffe.com. Using a deck of 56 cards, each with a separate value, The Values Edge(SM) system allows a user to sort and prioritize their values. 31 What are “Governance Values?” 1. Commitment to the Fiduciary Duties • Care • Loyalty • Obedience 2. Respect for differing opinions 3. Mutual respect among staff and board 4. Board – Staff Partnership 5. Healthy debate • 100% agreement is not required 200906092 TPB-AB21039 (09/09) 32 Stories Have Amazing Power Stories: • Help us make decisions • Help us define our own identities • Help us make sense of the world • Carry information • Aide Memory • Communicate values • Convey emotion • Inspire / Motivate Stories show us how to behave 33 Step 3: Share Your Stories Primary Story for Board Members? Why am I on this board? Getting to the emotional core: Ask: Why is this important? (3 times) (Emotion sharing: social glue, maintaining and strengthening relationships) 34 Step 3: Share Your Stories Also: Why am I optimistic for the future of this organization? 1. Who are we? (What makes us unique?) 2. Why were we founded? 3. What is our vision? 4. What are our accomplishments? 5. I can guess what you’re thinking… 35 Storytelling Exercise Board Members: Why am I on this board? Why am I optimistic? Staff Members: Why do I do what I do? What do we do? Why do we do it? Students: Why am I studying ____? Why? Why? Why? 200906092 TPB-AB21039 (09/09) 36 Step 3: Share Your Stories Where to share? • Recruiting Process • Orientations • Board Meetings • Committee Meetings • Staff Meetings • Fundraisers (obviously) • Story banking? 37 Step 4: Build Board Connections: With Each Other & With Staff The Service Club Model? a)Recruiting i. Everyone on the Recruiting Committee ii. Clarity on Expectations iii. Diversity b)Orientations i. ii. iii. iv. Job Descriptions / Committee Charters Current Members Attend Mentors Significant others /spouses involved (at some level) 38 Step 4: Build Board Connections: …With Each Other & With Staff c) Make sure they have something meaningful to do d)Networking at Board Meetings All work and no play… e)Small group meals f) Leadership tracks 39 Step 4: Build Board Connections: …With Each Other & With Staff g)“Board Member Emeritus” designations h)Open Board Meetings / Transparency i) Committees as “farm teams” j) Involving significant others / spouses / Family 40 Step 4: Build Connections: Part 2: Between Board and Clients k)Hands-on volunteering l) Opportunities for Small Group Interaction Other ideas? 41 Strong Engagement Review Essential Elements: Passion for the Mission Clarity of Mission Clarity of Role Optimism for the Future of Org Commitment to Board Commitment to Staff Commitment to Clients Sense of Accomplishment Sense of Purpose Sense of Shared Values Sense that Opinions Count Sense of Responsibility Obligation Support of Family Friends Fun Networking Opportunities Activities: 1: Debate Your Mission 2: Define or Clarify Your Values 3: Share Your Stories 4(a): Build Connections: Board and Staff • Recruiting process enhancements • Orientations • Networking • Small group meals • Leadership tracks • Emeritus designations • Open board meetings • Committees as farm teams • Involving significant others / family 4(b): Build Connections: Board and Clients • Hands-on volunteering • Small group interaction Clarity + Personal Connections lead to Commitment Commitment leads to Engagement 42 Roadmap to Board Member Engagement Clarity, Connections, Commitment 5. Accomplish Mission Recruiting, orientations, networking, leadership tracks, diversity, public recognition, involving family… 4. Connect Board to Each Other, to Staff & to Clients Why am I here? Why am I optimistic? 3. Share Your Stories Values Exercise Strong Governance 2. Define Your Values Five Questions What if We Disappeared? Core Strength? Core Score? 1. Debate Your Mission 43 Four Simple Steps to Strong Board Engagement Understanding and improving board engagement through Clarity, Connections, and Commitment Highly engaged board members have a number of things in common: Passion for their cause Clarity on their organization’s mission and vision Commitment to their cause Commitment to their fellow board members, staff members, and clients / beneficiaries 1. Debate Your Mission See 2-Page Handout 200906092 TPB-AB21039 (09/09) 44 Many Factors Influence Engagement… Board Leadership Meeting Structure Clarity on Mission /Vision Recruiting/ Orientation Sense of Shared Values Term Limits Clarity on Role Board Diversity Sense of Commitment Engagement Size of Board Public Recognition Time Required Networking Opportunities 200906092 TPB-AB21039 (09/09) 45 Board Member Engagement Clarity, Connections, Commitment To each other, To staff, & To clients Mission! Build Strong Connections Define Values Debate Mission Self Actualization Self Esteem Love / Belonging Safety Physiological Top three values Happiness / Confidence/ Satisfaction/ Optimism Networking Small group meals Leadership tracks “Emeritus” designation Hands-on Volunteering (clients) Small group interaction (clients) Share stories & values: Program Review? Past vs. Future? clarity on expectations / diversity job descriptions / committee charters / mentors / family involved b) Orientations: Why am I on this board? Why am I optimistic? Engagement Five Questions? What if we disappeared? The “Service Club” Model a) Recruiting: everyone on committee / c) d) e) f) g) h) Share Stories WHY JOIN? + Recruiting - “mind map” Also: • Open board meetings • Committees as farm teams • Involving family • Diversity: relationships, 1.) Recruiting process expertise, gender, ethnicity, age, committee 2.) Orientations 3.) Board meetings Champion? 4.) Committee meetings 5.) Staff meetings WHY ENGAGE? Affiliation Retention path Departure path Prospect Declines Time WHY LEAVE? Causes of Dysfunction? 46 Disclosures Wells Fargo Bank has agreed to provide the foregoing materials on a complimentary basis and not pursuant to or in conjunction with any new or existing agreement, account or relationship, including fiduciary relationships. 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